from Rakesh Jasani

1. Elements of the Promotion
Mix
Advertising
Ingredients Public Relations
Ingredients
of the
of the
Promotion
Promotion
Mix
Mix Personal Selling
Sales Promotion

2. The Communication
Process
Noise
Sender Encoding Channel Decoding Receiver
Channel

3. Goals and Tasks of
Promotion
Informing Reminding
Target
Audience
Persuading

4. AIDA and the Hierarchy of
Effects Purchase
Conviction
Preference
Liking
Knowledge
Awareness
Attention Interest Desire Action

5. When Elements of Promotion Are Most
Useful
Advertising
Effectiveness
Personal
selling
Sales
promotion
Public
relations
Awareness Knowledge Liking Preference Conviction Purchase
Very effective
Somewhat effective
Either not effective or inefficient

6. Factors that Affect the Promotion
Mix
Nature of the Product
Stage in the Product
Life Cycle
Target Market Characteristics
Type of Buying Decision
Available Funds
$$$
Push–and–Pull Strategies

7. Creating a Promotion
Plan
Analyze the Marketplace
Identify Target Market
Set Promotion Objectives
Develop Promotion Budget
Choose Promotion Mix

8. Criteria for Setting Promotion
Objectives
Promotion objectives should:
be measurable, concrete
be based on sound research, with a
well-defined target audience
be realistic
reinforce the overall marketing plan and
relate to specific marketing objectives

9. Examples of Promotion
Objectives
Objective: To Inform (Awareness)
To increase the top-of-mind awareness level for Peter Pan
peanut butter from 16 percent to 24 percent
Objective: To Persuade (Attitudinal)
To increase the percentage of parents who feel that Peter Pan
peanut butter is the best peanut butter for their children from
22 percent to 35 percent
Objective: To Remind
To remind consumers that Peter Pan peanut butter is the
creamiest peanut butter and is available at their nearest grocery
and convenience stores

10. Techniques for Setting Promotion
Budgets
• Arbitrary Allocation
• All - You - Can - Afford
• Competitive Parity
• Percent of Sales
• Market Share
• Objective and Task

11. Regulation of
Promotion
Self-Regulation
• National Advertising Division (NAD)
• National Advertising Review Board (NARB)
Federal Regulation
• Federal Trade Commission (FTC)

12. Effects of
Advertising
Diminishing
Return on Advertising Expenditures
returns
on additional
spending
Increasing efficiency
as ad budget becomes
sufficient
Advertising Spending

13. Major Types of
Advertising
Corporate Image
Institutional
Advertising
Advocacy Advertising
Types
Types
of
of
Advertising
Advertising
Pioneering
Product Competitive
Advertising
Comparative

14. Advertising Campaign Decision
Process
Determine the campaign objectives.
Make creative decisions. Make media decisions.
Evaluate the campaign.

15. Common Advertising
Appeals
Profit
Profit Save money, keep from losing money
Save money, keep from losing money
Health
Health Body-conscious, healthy
Body-conscious, healthy
Love or Romance
Love or Romance Sell cosmetics and perfumes
Sell cosmetics and perfumes
Social embarrassment, growing old, losing
Social embarrassment, growing old, losing
Fear
Fear health, power
health, power
Admiration
Admiration Celebrity endorsement effective
Celebrity endorsement effective
Convenience
Convenience Fast-food and microwave products
Fast-food and microwave products
Fun and Pleasure
Fun and Pleasure Vacations, beer, amusement parks
Vacations, beer, amusement parks
Vanity and Egotism Expensive, conspicuous items
Vanity and Egotism Expensive, conspicuous items

16. Executional Styles for
Advertising
Scientific Slice-of-Life
Musical Lifestyle
Demon-
Common
Common Spokes-
person/
stration Executional
Executional Testimonial
Styles
Styles
Mood or
Fantasy
Image
Real/
Animated
Humorous
Product
Symbols

17. Methods Used to Evaluate Advertising
Campaigns
Pretests
Examples:
• Consumer jury tests
• Portfolio or unfinished rough tests
• Physiological tests
Post-tests
Examples:
• Recognition tests
• Recall tests
• Attitude measures
• Audience size measurement

18. The Tools of Public
Relations
New Product Publicity
Product Placement
Customer Satisfaction
Major
Major Phone Lines
Tools
Tools
Used By
Used By Consumer Education
PR
PR
Professionals
Professionals Event Sponsorship
Issue Sponsorship
Web Sites

19. Types of Consumer & Sales Promotion
Type of buyer
Goals Sales promotion examples
Desired results
Loyal customers Reinforce behavior, • Loyalty marketing programs,
People who buy your increase consumption, such as frequent-buyer cards
product most or all change purchase timing or frequent-shopper clubs
of the time • Bonus packs that give loyal
consumers an incentive to
stock up or premiums offered
in return for proofs-of-purchase
Competitor’s Break loyalty, persuade •Sampling to introduce your
customers to switch to your brand product’s superior qualities
People who buy a compared to their brand
competitor’s product • Sweepstakes, contests, or
most or all of the time premiums that create interest
in the product
Brand switchers Persuade to buy your • Any promotion that lowers the
People who buy a brand more often price of the product, such as
variety of products coupons, price-off packages,
in the category and bonus packs
• Trade deals that help make the
product more readily available
than competing products
Price buyers Appeal with low prices • Coupons, price-off packages,
People who or supply added value refunds, or trade deals that
consistently buy the that makes price less reduce the price of brand to
least expensive brand important match that of the brand that
would have been purchased
Source: From Sales Promotion Essentials, 2E by Don. E. Schultz, William A. Robinson, and Lisa A. Petrison. Reprinted by permission of NTC Publishing Group, Lincolnwood, IL.

20. Tools for Consumer Sales
Promotion
Coupons
Premiums
Six
Six
Categories
Categories Frequent Buyer Programs
of
of
Consumer
Consumer Contests and
Sales
Sales Sweepstakes
Promotions
Promotions
Samples
Point-of-Purchase
Displays

21. Tools for Trade Sales
Promotion
Trade Allowances
Push Money
Six
Six
Training Categories
Categories
of
of
Trade
Trade
Free Merchandise Sales
Sales
Promotions
Promotions
Store Demonstrations
Business Meetings,
Conventions, Trade-Shows

22. Advantages of Personal
Selling
Detailed
Detailed
Information
Information Message Control
Message Control
Targeted
Targeted
Cost Control
Cost Control
Closing Sales
Closing Sales

23. Advertising Versus Personal
Selling
Personal Selling is more important if...
The product has a high value.
It is a custom-made product.
There are few customers.
The product is technically complex.
Customers are geographically concentrated.
Advertising/Sales Promotion is more important if...
The product has a low value.
It is a standardized product.
There are many customers.
The product is simple to understand.
Customers are geographically dispersed.

24. Differences Between Traditional & Relationship Selling
Traditional Personal Selling Relationship Selling
Sell products (goods and services) Sell advice, assistance, and counsel
Focus on closing sales Focus on improving the customer’s bottom line
Limited sales planning Considers sales planning as top priority
Spend most contact time telling Spend most contact time attempting to build a
customers about product problem-solving environment with the customer
Conduct “product-specific” needs Conduct discovery in the full scope of the
assessment customer’s operations
“Lone-wolf” approach to the account Team approach to the account
Proposals and presentations based Proposals and presentations based on profit
on pricing and product features impact and strategic benefits to the customer
Sales follow-up focused on product Sales follow-up is long term, focused on
delivery long-term relationship enhancement
Source: Robert M. Peterson, Patrick L. Shul, and George H. Lucas, Jr., “Consultative Selling: Walking the Walk in the New Selling Environment,”
National Conference on Sales Management, Proceedings, March 1996.

25. Steps in the Selling
Process
Generating Sales Leads
Qualifying Sales Leads
Basic
Basic Making the Sales Approach
Steps in
Steps in Making the Sales
the
the Presentation
Selling
Selling
Process
Process Handling Objections
Closing the Sale
Following Up

26. Functions of Sales
Management
Set Sales
Evaluate Objectives Structure
Sales Force Sales Force
Manage Major Tasks of
Major Tasks of Determine
Sales Force
Turnover Sales
Sales Size
Management
Management
Develop
Motivate
Compen-
Sales Force
sation Plan
Train Sales Recruit Sales
Force Force

27. Cost Determinants of
200
Price
150
MC
Dollars
ATC
100
AVC
50
AFC
0
1 2 3 4 5 6 7 8 9 10
Quantity

28. Break-Even
Analysis
Total Revenue
Break Even Profits
Total Costs
Price ($)
Fixed Costs
Losses
Quantity (units)

29. Steps in Setting the Right
Price
Establish Pricing Goals
Estimate Demand, Costs,
and Profits
Choose Strategy
Fine-Tune Base Price
$ $ $ $ Price $ $
Right $ $

30. Legal and Ethical Issues in
Pricing
Unfair Trade Practices
Key Legal
Key Legal Price Fixing
and Ethical
and Ethical
Issues
Issues
Related to
Related to
Price Price Discrimination
Price
Predatory Pricing

31. Discounts, Allowances, and
Rebates
Cash
EDLP
Discount
Quantity Seasonal
Discount Price Discounts
Price
Reductions
Reductions
Functional Promotional
Discount Allowances
Trade Loading Rebates

32. Geographic
Pricing
FOB Origin
Uniform Delivered
Pricing
Pricing
Tactics
Tactics Zone Pricing
Based on
Based on
Geography
Geography
Freight-Absorption
Basing-Point

33. Special Pricing
Tactics
Single
Two-Part Price Flexible
Pricing Pricing
Bundle
Common
Common Professional
Pricing Special Pricing
Special Pricing Services
Tactics
Tactics
Odd-Even Price
Pricing Lining
Bait Leader
Pricing Pricing